The Securities and Exchange Commission approved the P5-billion maiden preferred share offering of A Brown Company Inc.
ABCI’s shelf registration covers up to 50 million cumulative, non-voting, non-participating, non-convertible and redeemable perpetual preferred shares.
The preferred shares may be issued in one or more tranches within three years. For the first tranche, ABCI is selling 10 million preferred shares at P100 each, with an over-allotment option for another 5 million preferred shares.
The preferred shares will be listed on the main board of the Philippine Stock Exchange.
Net proceeds from the fund raising activity will be used to finance the development of real estate projects, land banking, funding requirements of subsidiary Irradiation Solutions Inc. and other general corporate purposes.
The company plans to allocate P600 million for property developments in Tanay, Rizal; Bukidnon; Butuan City, Misamis Oriental; and Cagayan de Oro City.
It allocated P400 million for landbanking initiatives in Tanay, Rizal; Cagayan de Oro; Butuan City; and Bukidnon.
The company is also looking at new areas where it can consolidate sizable portions to come up with integrated mixed-use developments. It has 293 hectares in its land bank.
Meanwhile, about P350 million from the proceeds will fund Irradiation Solutions, which is developing the Tanay Multipurpose Irradiation Facility Project.
The company engaged PNB Capital and Investment Corp. as the sole issue manager, lead underwriter and sole bookrunner for the offering.
Aside from real estate development ABCI also has investments in power generation through affiliates Palm Concepcion Power Corp. and Peakpower Energy Inc.
The share price of ABCI was unchanged at P0.88 Friday.